Secondary Production

SA platinum miners enter recycling market despite ‘mixed’ expectations

- David Oliveira

Despite the mixed performance and expectations of the recycling industry, local platinum producers Sibanye and Northam Platinum this year entered the platinum-group metals (PGMs) recycling market.

Platinum recycling is projected to decline by 6% year-on-year to 1.76-million ounces this year, owing to reduced ounces from jewellery recycling, the second-largest source of recycling after automotive catalytic converters (autocatalysts).

Jewellery recycling is expected to decline by 20% year-on-year to 500 000 oz as jewellery recycling in China returns to more typical levels after the country experienced a significant spike last year, with unusually large stock flows from retailers to manufacturers, according to the World Platinum Investment Council’s ‘Platinum Quarterly Q1 2017’ report, published in May.

Overall, secondary platinum supply grew by 6% year-on-year to 420 000 oz in the first quarter of this year.

Platinum recovered from spent autocatalysts remained flat quarter-on-quarter but rose 7% year-on-year in the first quarter to 300 000 oz.

Platinum jewellery recycling rose 4% year-on-year in the first quarter to 120 000 oz. The report notes that jewellery recycling in Japan grew in the first quarter of this year, compared with the corresponding quarter in 2016, owing to this year’s higher platinum price compensating for lower recycling in China, where recycling is positively correlated with jewellery sales volumes.

Platinum recovered from spent autocatalysts is forecast to rise 2% year-on-year to above 1.25-million ounces. The report points out that the volumes and grades of platinum recovered from autocatalysts are likely to improve slightly this year after being impacted on by the falling prices of scrap steel and platinum.